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Sam
Sam, Attorney at Law
Category: Legal
Satisfied Customers: 27011
Experience:  More than 20 years of experience practicing law.
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Was going to purchase a small established business but

Customer Question

Was going to purchase a small established business but changed my mind after giving a 2000 deposit am i able to get a refund
Submitted: 1 year ago.
Category: Legal
Expert:  Sam replied 1 year ago.

Hello

This is Samuel. Your deposit is made in good faith that you will continue with the purchase. In that vein the seller has taken the property off the market and therefore may have passed up other opportunities. So, this boils down to what your Purchase Contract says regarding a cancellation within a certain amount of time and the good faith deposit being returned.

Expert:  Sam replied 1 year ago.

There also should be contingency provisions for instance, once you have an inspection, you should be able to cancel within a certain amount of time with no explanation and get your deposit back.

Customer: replied 1 year ago.
There was no cancellation clause just 3 weeks to pay the remaining balance which financing fell thru
Expert:  Sam replied 1 year ago.

Ok. And so there is noting in the contract that if you cannot secure financing within a certain amount of time the deposit is refunded or forfeited? What is the seller saying?

Expert:  Sam replied 1 year ago.

See because it is up to the buyer to act in accordance with the contract and if it says must secure financing within 30 days from the date of the contract and the buyer does not then the deposit is lost to the seller unless the contract provides otherwise.

Customer: replied 1 year ago.
He said he was not going to refund the cash deposit
Expert:  Sam replied 1 year ago.

Thank you. ***** suggest you read your contract and if is says otherwise, you can sue him for it. But if there is no provision for return of the deposit because seller could not secure financing then he does not have to return it to you. He has taken the property off the market and could have lost a sale because of that. So the deposit is the seller's protection.

Expert:  Sam replied 1 year ago.

You can have a local attorney review it or you can attach it here and I can look to see what your rights were in this regard.